Tuesday, December 12, 2006
HP says its looking for higher revenue
HP says its looking for higher revenue
Hewlett-Packard Co suggests that 2008 revenue will top $100 Billion dollars. These estimates come after the company has cut 15,000 jobs and struggles with a low profit margin in the computer building and printing and imaging sectors.
The short term outlook is bleak for HP, I believe. The technicals scream sell with RSI divergence on this recent peak. I’m glad to see this article hit the news boards as I probably would not have stumbled upon this chart. $40 is a tough area for the stock to pass and there is a trendline moving just above the stock, which also sits currently at $40 per share.
I would suggest a quick sell short of this stock. Its probably good for $3 or 7.5% to a return to the 100 day moving average. Regardless of improving fundamentals, this stock is ready for a correction.
